The Commission intends to govern economic policy reforms of Member States more strongly. It wants to introduce a „Convergence and Competitiveness Instrument“ that commits Member States to the implementation of reforms for financial support in turn. Moreover the Commission wants to establish „ex ante coordination for major economic policy reforms“ in EU law.

cepPolicyBrief

Already today are Euro countries liable for other Euro countries, on which policies they have no effect. On one hand do the proposed measures allow countries - albeit limited - to exert influence over one another. On the other hand are the measures reducing the liability of potential recipient states for their policy. Reform arrangements based on the Instrument should be legally binding. A binding arrangement could only be based on the “flexibility clause” (Art. 352 TFEU), which requires unanimity of the Council.